BMW confident of retaining technology links with Honda

MUNICH - BMW, the German car maker, has ruled out any prospect of Honda withdrawing from its technical co-operation agreements with Rover, writes John Eisenhammer.

Bernd Pischetsrieder, BMW's chief executive, expects the contracts with Honda to continue into Rover's next model generation of the 200, 400 and 600 series. 'We want this long-term co-operation to continue because it makes good business sense,' he said.

In spite of feelings that Honda has been overcharging Rover for certain parts, notably engines, BMW said the differences would be resolved. 'Despite offers from several European makers, there is no need for us to talk about other sources,' said Wolfgang Reitzle, who is responsible for production.

Rover will continue with its full range of products, which will require increased investment. BMW plans a rights issue this year to raise DM805m ( pounds 320m).